The world is always in need of oil and the nations with the largest oil activities, whether it’s production or importation, hold an economic might on their hands. What they possess is the power to move the oil market – movements that can be felt throughout the world.
Here are the top 5 countries with the largest activities related to oil, and how they shape the entire oil market.
India
How it moves the market: India is the 3rd largest oil consumer in the world. And with a population of 1.37 billion people, it has the right asset to affect the global oil market. It is in the perfect position to compete with China’s own assets.
Saudi Arabia
How it moves the market: Saudi Arabia owns Saudi Aramco, the most profitable oil company in the world. Also, the Arab nation has a bigger spare oil capacity than any country. It’s even larger than the other four major oil players in our list.
The black gold from Saudi fuels much of East Asia. The company is also expanding its exports to India to make up for the lost oil in Iran. The juggernaut oil company also owns the largest oil refinery in the United States.
Russia
How it moves the market: With a 10 million barrels per day production size, Russia is considered as one of the most influential nations that moves the global oil market.
Aside from its massive production size, one of the factors that makes it influential is its crucial role in OPEC and Non-OPEC Declaration of Cooperation. Russia is not a member of OPEC, but it can still influence the decision making of the cartel. In other words, it can allow or halt OPEC’s production decisions at will.
China
How it moves the market: It has two powerful assets that lie on its lap. First, it is the world’s largest oil importer which pulls 10.64 million barrels per day. That number alone can point where the oil market is going.
Today, China is sitting in one of the most important spots in the oil market that it can directly affect its movements. Indications alone that China’s economy is slowing can substantially impact the global oil prices. But the biggest influence of this nation in the oil industry is its trade talks with its equally giant counterpart – the U.S. As everybody knows, any actions of China, with all the assets that it’s holding, can directly affect the global oil market.
United States
How it moves the market: It’s hard to think of a list like this without the United states in it. With an oil production of 12.3 million barrels per day, it gives us an idea how the US can be a major player in the oil industry. Also, the U.S. has proven its might over and over again on wielding influence on other countries’ oil business. One of this is the shutting down of Iran’s oil exports in recent months.
Also read: Saudi Arabia to Raise Oil Price
